BLBG:Oil Rises From One-Week Low on Economic Recovery Signs
Oil rose from its lowest closing level in a week in New York as signs of economic recovery in Europe countered estimates that U.S. crude inventories rose.
West Texas Intermediate advanced as much as 0.5 percent after their biggest loss in two months yesterday. A survey by Markit Economics today showed European services output shrank less than initially estimated in January, prompting the bloc’s single currency to strengthen against the dollar. U.S. crude stockpiles probably increased for a third week, according to a Bloomberg News survey before Energy Information Administration data tomorrow.
“Upbeat macro sentiment” is driving oil’s gains, said Andrey Kryuchenkov, an analyst at VTB Capital in London, who predicts that WTI will struggle to reach $100 a barrel this month.
Crude for March delivery gained as much as 52 cents to $96.69 a barrel in electronic trading on the New York Mercantile Exchange and was at $96.66 at 10:51 a.m. London time. The volume of all futures traded was 11.7 percent above the 100-day average. The contract slid $1.60 yesterday to $96.17, the lowest close since Jan. 25 and the biggest decrease since Dec. 6.
Brent for March settlement advanced 51 cents to $116.11 a barrel on the London-based ICE Futures Europe exchange. The volume of all futures traded was 39.4 percent above the 100-day average. The European benchmark grade was at a premium of $19.45 to WTI futures, compared with $19.43 yesterday.
To contact the reporter on this story: Grant Smith in London at gsmith52@bloomberg.net
To contact the editor responsible for this story: Stephen Voss on sev@bloomberg.net
